Wales sees drop in business activity according to NatWest data
The contraction follows back-to-back expansions in activity and reflected weak client demand as new business declined for the first time in three months.
Meanwhile, the index reported that the rate of job shedding softened to the weakest since last October.
Jessica Shipman, chairman, NatWest Cymru Regional Board, said: "July data indicated a dip in demand conditions at Welsh firms, as a renewed fall in new business dented output levels.
"Customer hesitancy and a fragile sales environment weighed on the private sector, as companies cut workforce numbers again amid a sharper reduction in backlogs of work.
"Nevertheless, the pace of job shedding slowed to the weakest in nine months as business confidence picked up to its strongest since February. Businesses hope for a rebound in customer purchasing through the remainder of 2025.
"Efforts to cut headcounts also in part stemmed from the ongoing fallout from recent changes to National Insurance contributions and the Minimum Wage. Despite easing in June, inflationary pressures regained some momentum and although firms were able to raise their selling prices, new order inflows suffered. Amid growing strain on margins, containing pressure on balance sheets will remain a priority in the coming months."
Welsh private sector firms signalled a renewed decrease in new orders during July. Although modest, the pace of decline was the quickest in four months. That said, the pace of contraction was slightly slower than the UK average.
Despite a drop in new orders, Welsh firms were more upbeat in their expectations regarding output over the coming year in July. The level of positive sentiment picked up to the highest since February but expectations were muted.
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Wales Online
4 minutes ago
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£400m flagship Welsh project needs more money to become reality
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'I indicated in January that initial feedback from investors was that, while they applauded the vision and could see the strategic need for such a facility, the construction and early-years commercial revenue risks of GCRE still remained the biggest barriers to commitment. Despite international interest from both the Middle East and the US – from the rail and energy sectors – we still have not secured the funding we need. 'As a result, GCRE has taken longer to move towards the construction phase than we had originally intended. In recent months, that has led to some challenging headlines about the delay to the project and questions about its ultimate viability. There's no hiding from the fact that this isn't where we wanted to be. 'But I also know from my own background in major projects that it's not unusual, particularly for a development as large, complex, and novel as GCRE. One thing I know for sure, though: the prize is worth it. 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Daily Mail
34 minutes ago
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This would be an additional administrative burden and mean HM Revenue & Customs would have to hold long-term records of gifts over decades. Rachel Griffin, chartered financial planner at Quilter says a cap 'might encourage people to make large gifts earlier in life to use up their allowance, potentially moving significant assets out of their control before they are financially ready.' Gianpaolo Mantini, chartered financial planner at Saltus, thinks Reeves could introduce lifetime capital transfer charges, as is already the case with trusts. 'They might do something like the French system where you can give a certain amount within a 15 year period [but] I think it would be very difficult logistically.' Another option for Reeves is to extend the seven-year rule to 10 years, although this would fly in the face of the reduction to five years, as first explored by the now-defunct Office for Tax Simplification. 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Business News Wales
an hour ago
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Surveyors in Wales remain cautious about the outlook for the housing market with demand subdued and supply weaker, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. A net balance of 1% of surveyors in Wales reported that prices rose over the past three months. Although muted, this is higher than the average UK balance which sits at -13%. However, looking forward surveyors are cautious when it comes to pricing as a net balance of -18% expect prices to fall over the next three months. Although remaining in negative territory, this is up slightly from the -21% that was seen in the June report. On the demand side, a net balance of -30% of survey respondents in Wales reported that new buyer enquiries fell through July which is the lowest this balance has been since February of this year. And market supply levels appear to have dipped too. A net balance of -8% of surveyors in Wales report that new instructions to sell fell through July, which is the first time this balance has appeared in negative territory since October 2024. With demand and supply both subdued, sales also fell through July. A net balance of -55% of Welsh surveyors reported a fall in newly agreed sales. And similar to pricing, surveyors are hesitant on the outlook with a net balance of -13% of respondents in Wales expecting sales to fall over the next three months. Regarding the rental market, Welsh surveyors report that both tenant demand and landlord instructions fell flat through July. Subsequently, surveyors in Wales expect rents to be flat over the next three months. Commenting on the sales market, Anthony Filice, FRICS, Kelvin Francis Ltd said: 'Activity in viewings and sales is starting to slow with the holiday season, but viewers are serious, and sales are being agreed. Vendors need to be realistic in pricing, but confidence remains amongst buyers.' Discussing the lettings market, David James, FRICS of James Dean added: 'There is still a shortage of rental properties on the market.' Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, said: 'The somewhat flatter tone to the feedback to the July RICS Residential Survey highlights ongoing challenges facing the housing market. Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions. Meanwhile, uncertainty about the potential contents of the Chancellor's autumn Budget is also raising some concerns. Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time.'
